Bitcoin (BTC) was flat at the opening of Wall Street on August 26. Analysis has reinforced warnings of a short-term BTC price correction.
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Bitcoin Rebound: “There Is No Straight Line”
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD is starting to show signs of weakness on lower time frames as it remains below $64,000.
Bitstamp price soared to $63,128, the lowest since the weekend, which has caused popular market commentators to take a cautious stance.
“Summary: There is no straight line,” trading resource Material Indicators wrote in a post on X.
A chart from one of its proprietary trading tools showed order book liquidity on Binance, the world’s largest exchange, shifting in favor of the bears.
“FireCharts shows Bitcoin bid/ask volume dropping to 62.5k. This type of move tends to push the price down. It also tends to attract late shorts,” he continues.
“Watch your positions carefully and resist the urge to trade excessively. Expect volatility until the end of the month.”
Popular trader Crypto Chase warned that Bitcoin is “lacking the aggressive follow-through that is typically seen in a true breakout.”
“The more people are given a chance to get on board (and the more America wakes up), the less IMO should be trusted. After hitting rock bottom before the real pump, local prices are usually not available for a few hours,” he wrote of the short period.
Others added to existing concerns about the possibility of a “Bart Simpson” move that could send prices lower to where they were late last week.
Among them was popular trader Jelle, who described the results as “not surprising.”
Nonetheless, he argued that the market “looks much stronger than it has in the past few months, like previous bananas.”
Conversely, bulls faced a sustained battle to make August a “green” monthly candle, erasing most of the losses from the six-month low two weeks ago.
The market was “well positioned” for a BTC price rally.
Following last week’s positive US macroeconomic developments, trading firm QCP Capital was equally surprised that BTC prices were not continuing to rise.
Related: Will the BTC Price Drop End in September? 5 Things to Know About Bitcoin This Week
According to a recent announcement sent to subscribers of the Telegram channel, the market was already expecting the Federal Reserve to announce the start of interest rate hikes next month.
“Despite higher spots, volume on BTC and ETH remains more skewed towards puts than calls through October,” he said.
“This is surprising given the overwhelmingly bullish sentiment. This may indicate that the market was well prepared for this move and was able to sell calls very quickly to realize profits.”
QCP added that it expects BTC/USD to remain in the range of $62,000 and $67,000 “in the short term.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.